Britain's decision to exit the ERM in September 1992 had what effect?
A) Lower interest rates and a depreciated exchange rate caused the British economy to expand.
B) It subjected Britain to a ruling by the European Courts of Justice.
C) It caused the system to collapse.
D) It had no effect on Britain's economy.

Question

Quizplus · Accepted Answer

Britain's decision to exit the ERM caused the pound to depreciate significantly, which led to lower interest rates and an expansion of the British economy. This is known as Black Wednesday, and it ultimately resulted in Britain's exclusion from the Eurozone.

Britain's Decision to Exit the ERM in September 1992 Had